California’s Employment Development Department is delaying disability insurance payments due to unrelated fraudulent activity.

Several recipients of disability or paid family leave benefits in California report not receiving scheduled payments from the governmental body responsible for administering unemployment and other social benefits. This stop in payment is exacerbating the already-precarious situations faced by recipients of disability and family leave benefits. Recipients may have claims for the funds they are entitled to plus interest, as well as potentially any incidental damages that resulted from their lack of funds. 

The agency did not issue many SDI payments as expected between December 2021 and March 2022, claiming to be fighting fraud amidst an uptick in fraudulent filings. Payments appear to have been stopped between the beginning of December and at least mid-March.

The very same governmental agency faced a class action lawsuit in 2021 for unexpectedly stopping unemployment payments to previously-approved applicants as the agency worked through a backlog in eligibility determinations. The issues appear to be connected, though the class action appears to only address the unemployment issue. 

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